When consulting with our clients, one of the most frequent questions I get is how much impact does each variable have on the Intelliscore Plus Score? Today, I will attempt to answer this question, without giving away our “secret sauce”. Variables affecting a commercial credit score, like Intelliscore Plus, are broken down into three key factors:

Recency – 50-60% of model weighting is focused on current payment status including the number of times delinquent, trade balance, and percent of accounts delinquent. Another 5-10% of the weight is affected by the company age, industry risk associated with the SIC code, and the size of the business such as employee size.

Frequency – 10-15% of the model weight is focused in the number of derogatory items such as number of collections, liens, judgments and bankruptcies. In addition, another 5-10% is concerned with the historical payment patterns over time. Is the frequency of slow pay increasing or decreasing over time?

Monetary – Finally, 10-15% is weighted towards credit utilization. The ratio of account balance to recent high credit balance, the ratio of delinquent balances to credit limits, and balances carried in relation to the rest of the industry all effect the credit score.

By understanding what factors impact your commercial credit score, and the weights attached to them, you will be in a great position to manage your business profile.